Anaheim Unveils $588-Million ‘96-97 Budget Plan

ANAHEIM —  Only days after committing $30 million toward a major renovation of Anaheim Stadium, city officials Thursday unveiled their most optimistic budget plan in years.

The proposed $588-million fiscal year 1996-97 budget is a dramatic departure from the austere spending plans of the last five years, calling for the addition of five officers to the police force.

There will be no reduction in city services. But the 35 city employees at Anaheim Stadium, which will be managed by Walt Disney Co. under a deal approved Tuesday, face an uncertain future if the company does not maintain their positions.

“This is the first year since the recession hit that we have a balanced budget without using any one-time monies or dipping into reserves,” City Manager James D. Ruth said Thursday. “We have a balanced budget that we think addresses the priorities of our community.”

City officials credit their healthy financial position to a booming tourist season, which has resulted in increased revenue from sales and hotel bed taxes. They also said organizational changes in recent years have resulted in a 10% reduction in the city’s work force.

The budget represents a 5.9% reduction from the previous year. This is mainly due to a decrease in planned redevelopment and public utility projects and a reduction of operating expenses at Anaheim Stadium, scheduled to be run by Disney Sports Enterprises beginning in October.

Disney’s takeover of stadium operations is part of a deal approved by the City Council on Tuesday. The agreement also calls for the city to pay 30% of a $100-million refurbishment of the stadium--with Disney footing the rest of the bill--and assures the Angels’ presence in Anaheim for at least 20 more years.

The city will fund its portion of the stadium renovation through $10 million from outdoor stadium advertising revenue, $10 million from hotel bed tax previously earmarked for the Pond and $10 million from the city’s $110-million reserve fund.

“The investment with the stadium will have absolutely no negative impact on the operations of the city,” Ruth said. “You can always make the argument that you can take that money and allocate it to some of the services. What we say is that we have aggressively pursued the priorities established by the City Council and we’re meeting those priorities.”

One of the biggest priorities has been the hiring of more police officers. The additional five officers would bring the department’s total to 389. There have been 49 police officers added to the force since 1990.

Still, the number of full-time positions in the city, currently at 2,045, is expected to drop by 35 in October with the operational changes at the stadium. City officials said they will try to find jobs for the employees within city government but there are no guarantees.

Other budget highlights include:

* The addition of two prosecutors to the branch of the city attorney’s office that handles misdemeanor criminal matters.

* $250,000 toward a slate of youth activities that was temporarily funded last year. This will become a permanent part of the budget.

* Funding for construction of a downtown community center and an Anaheim Hills police substation and continued funding for the revitalization of the area around Disneyland and the Anaheim Convention Center.

Last year, the city faced an $8-million shortfall when it began its budget preparations. The gap was closed by reducing a planned contribution to the general fund by $4 million, cutting $1 million from the budget and adding about $3 million in one-time revenue.

“This year,” Ruth said, “I think we’ve turned a corner.”

Public hearings on the proposed budget are scheduled for June 4 and 11.